The Central, South Asia and Oceania (CSAO) region has emerged as the new epicenter of cryptocurrency adoption, according to Chainalysis.
In its annual report on global cryptocurrency adoption levels, titled The Global Adoption Index 2024, the blockchain analytics firm highlighted the enormous growth that the crypto market has experienced in the CSAO region, which is now positioned as one of the most emerging markets for this asset class.
According to Chainalysis, the rise of cryptocurrencies is transforming the global financial landscape, especially in countries like India, Indonesia and Singapore, which have become the undisputed leaders in global cryptocurrency adoption.
Cryptocurrency adoption in Central and South Asia and Oceania (CSAO)
According to the Chainalysis report, the region CSAO has emerged as a hub of crypto activity, representing 16,6% of the global value received in cryptocurrencies, with a total of $750.000 billion in flows of these digital assets between July 2023 and June 2024. The firm highlighted that the dynamic ecosystem of crypto-asset services offered in the region has been driving the growth of crypto adoption.
India currently ranks first on Chainalysis’ Global Adoption Index, despite crypto assets facing significant regulatory challenges in the country. However, between July 2023 and June of this year, cryptocurrencies generated over $157.000 billion in flows into India, demonstrating remarkable resilience in the face of taxes and lockdowns put in place by the Financial Intelligence Unit.
Chainalysis highlighted that continued crypto activity in the country suggests users are finding ways to navigate the complex regulatory landscape, exposing a persistent desire to participate in the growing cryptocurrency market.
Source: The Global Adoption Index 2024
Meanwhile, Indonesia, which ranks third, has shown explosive growth in cryptocurrency trading, with digital asset exchange activity increasing by almost 200%. According to the firm, cryptocurrency adoption in this country has been largely aided by a young population that sees crypto assets as an attractive investment opportunity.
Additionally, the combination of a regulatory environment pushing investors toward alternative assets and a strong inclination toward technology has positioned Indonesia as a key player in the crypto space, Chainalysis noted.
Spot ETFs boost crypto activity
The report also highlights that the launch of Bitcoin exchange-traded funds (ETFs) in the United States has had a significant impact on the overall cryptocurrency activity recorded this year. Since the start of 2024, an increase in the total value of Bitcoin transactions has been observed, especially in regions with more developed economies, such as North America and Western Europe.
This phenomenon has attracted institutional investors, leading to an increase in large-volume transfers of crypto assets.
The growing use of stablecoins in the real world
On the other hand, Chainalysis highlighted that stablecoins play an important role in global cryptocurrency activity. These stablecoins have emerged as a vital component of the crypto ecosystem, especially in economies where inflation and monetary instability are constant concerns for citizens. In the context of CSAO, the use of stablecoins has grown exponentially, facilitating transactions in everyday life.
The Chainalysis report also noted that the growth in stablecoin usage is closely tied to the need for stability in transactions. In countries like India and Indonesia, where traditional financial infrastructure can be limited, stablecoins offer a viable alternative for trading and investing. This has led to an increase in consumer confidence and increased use of these digital currencies in daily life. On the other hand, clear regulation in countries like Singapore has allowed stablecoins to be adopted by both consumers and institutions, strengthening the financial infrastructure in the region.
The role of Millennials and Gen Z in global cryptocurrency adoption
An interesting finding from Chainalysis’ report is the crucial role that Millennials and Gen Z generations play in accelerating cryptocurrency adoption in the CSAO region. These generations, which represent a significant percentage of investors in the region, are driving a cultural shift towards accepting cryptocurrencies as a legitimate form of investment and trading.
Chainalysis analysis suggests that youth and familiarity with technology in these generations are driving factors for the use and adoption of cryptocurrencies. Furthermore, the increasing availability of exchange platforms and DeFi services has facilitated access to cryptocurrencies, allowing young investors to participate in the market in a more effective way. In Indonesia, these factors are creating a community of “crypto degens” who actively seek out high-risk, high-reward opportunities within the DeFi space.
In conclusion, the Chainalysis report highlights the transformation of the crypto landscape in the CSAO region, where cryptocurrency adoption is being driven by factors such as regulatory innovation, commerce growth, and the active participation of younger generations. It also highlights that the growing acceptance of stablecoins, along with the influence of spot ETFs, have played a key role in accelerating the integration of cryptocurrencies into traditional finance and everyday life.
For this report, Chainalysis analyzed data from 151 countries, taking into account transaction volumes, types of cryptocurrency services and protocols, web traffic, and the opinion of local experts and operators in the crypto industry.
